Student loan debt; what happens now?

Be prepared to start making payments again after more than three years. Payments officially come back in October. Interest can start accruing on September 1, 2023.

Borrowers should first log in to studentaid.gov, to figure out your debt amount and what company you owe money. Many people got a new loan servicer over the pandemic.

Then start working payments back into your budget. Nerdwallet student loan expert Eliza Haverstock said if you have saved at all since the payment pause, consider putting a lump sum down on the principle loan amount.

If not, there are a number of other payment options.

“You could consider something called an income driven repayment plan, which will cap your monthly payments at a set portion of your income and your monthly payments could even be $0 under one of these plans,” added Haverstock. “You could ask your student loan servicer about a temporary deferment or forbearance, which could extend, you know, this pause further.”

More Robocalls

Following Friday’s ruling, the Federal Communications Commission issued a warning about a potential rise in student loan debt scam robocalls and texts.

“Scam calls and texts often use broadly publicized current events to add legitimacy and familiarity to their fraudulent schemes,” said the FCC. “Scammers might use these calls or texts to pressure consumers to make a payment or provide private information.”

Student Debt Schemes

“The scam calls and texts may purport to offer some form of relief from student loan debt.  Common scam campaigns purport to be from the ‘student loan forgiveness center’ or from a state ‘forgiveness center.’  Other messages reference a settlement with the Department of Education that entitles the recipient to ‘fully discharge’ their student loan obligations,” the FCC added. 

Also, the calls and texts may appear to come from a legitimate, government number.

Spotting a ripoff

The FCC warned, you could be communicating with a con artist if:

• You are pressured to send money or give personal information.
• The caller/texter requests an upfront payment in order to apply or appeal your application.      
• You are directed to any website outside of StudentAid.gov.
• You are requested to contact the caller/texter via an app-based message platform.
• The call/text is made using a suspicious caller ID, such as a name that is inconsistent with the substance of the message, or the same area code and first three digits of your phone number.
• The caller/texter asks for your Federal Student Aid ID, bank account number, or credit card information.
• The caller/texter offers services in exchange for payment via gift cards.

If you get a scam robocall or robotext, file a complaint with the FCC.